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NOTE 14 - LINE OF CREDIT
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12 Months Ended |
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Dec. 31, 2011
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| Line Of Credit Disclosure Textblock |
NOTE 14
– LINE OF CREDIT
In
October 2011 the Company negotiated a line of credit from a
bank. The agreement included a borrowing base calculation
tied to accounts receivable with a maximum availability of
$750,000. As of December 31, 2011, the availability under
this line was approximately $533,000 based upon eligible
collateral at December 31, 2010.Interest on outstanding
balances is payable daily at an interest rate that is two and
three quarters percentage points (2.75%) above the Prime
Rate. The Company’s interest rate was 6% as
of December 31, 2011. The line is collateralized
by substantially all of the assets of the Company and is
guaranteed by the Company’s CEO. The credit
facility required the Company to pay a monitoring fee of
0.315% of eligible collateral to be paid monthly. An annual
facility fee equal to one percent (1%) of the Maximum Credit
is assessed upon the initial funding, annually thereafter.
The term of the agreement is for three years and expires in
October 2014. As of December 31, 2011 there was no
outstanding balance open under this agreement.
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